[Solution Library] The Drebb Root Beer Company distributes their soft drink at a constant demand rate of 12,500 cases per year. A case cost the company
Question: The Drebb Root Beer Company distributes their soft drink at a constant demand rate of 12,500 cases per year. A case cost the company $10.50 with an ordering cost of $23 per order. The inventory holding costs are charged at 16 percent of the cost per unit. The lead time is 5 days with 250 working days per year.
Determine the EOQ, the Total Annual Cost and the Reorder Point. Show all your work.
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